Sectoral Mutual Funds

Dear Dr Vijaya, May I know your investment objective(s) and time-frame??  

Dear Mr.Shreekanth 10 years Time frame. No particular goal. I just want secure investments which give better returns than FDs and cover inflation ,because I am unable to make choices myself given my limited knowledge on the subject. Some one suggested the 3 funds listed in my first question. Yet another friend said..".No these are wrong.Because they invest in sectors". I would like your help. Vijaya

Dear Vijaya ji, Kindly note that returns from Mutual Funds (Debt/Equity funds) are not guaranteed and they are not secured like FDs. In terms of risk profile, sectoral funds can have the highest risk profile and the returns from them can be very volatile. In case, you are a new MF investor, you may pick one Equity balanced fund, one Large cap fund and one Diversified Equity fund to start with. Ex :  HDFC Balanced Fund, Birla frontline equity, Franklin Prima plus etc.,   Related articles : https://www.relakhs.com/best-balanced-mutual-fund-schemes-review/ https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ https://www.relakhs.com/best-mutual-fund-schemes-sebi-norms/ https://www.relakhs.com/list-of-best-investment-options-schemes-in-india/ https://www.relakhs.com/retirement-planning-calculator-3-easy-steps/  

Thankyou. I will certainly read. Do FMCG funds invest in sectors? Vijaya

Dear Vijaya ji, FMCG stands for Fast Moving Consumer Care. A scheme like ICICI Pru FMCG funds invests primarily in companies which are related to this sector only. The investment objective of this scheme is - " to generate long-term capital appreciation through investments predominantly in equity and related securities of FMCG companies. Around 90 per cent of the corpus would be invested in the equities of FMCG companies, with the balance 10 per cent invested in the debt and money market instruments. "